Numbers on why this recession is not that bad
All recessions are tough – but the sky is not falling. Below is one of the better articles we have seen on why this one will not be that bad.
Mortgage Mark Herman,
Calgary Alberta mortgage broker for home purchase and mortgage renewal.
Only two recessions in Calgary since 1987 and both more severe than 2015 forecast
Mario Toneguzzi, Calgary HeraldPublished on: September 28, 2015 | Last Updated: September 28, 2015 3:42 PM MDT
While Calgary’s economy has been sluggish this year and most experts are forecasting a recession, it will be a mild one compared with what the city has gone through in the past.
Calgary Housing Affordabilty IMPROVES!
This short version of the article should provide some confidence that the sky is not falling in Calgary and we will recover.
Mortgage Mark Herman, Best Calgary mortgage broker for home purchases and mortgage renewals
How the US may start to raise interest rates
This bite of an article is as interesting and as funny as US interest rate increase articles can be.
See why it is better to have your mortgage broker follow this stuff for you then to read it yourself!
Payout penalties – how the Big-5 banks get you
Below is a great example of how the Big-5 banks get you on a mortgage payout.
Always talk to a broker about your mortgage because Grandma used to say, “the rate is the rate, but the details are the details!”
Calgary Housing Market Still Strong
Below is an article that notes Calgary’s home prices are still supported.
Mark Herman, top Calgary mortgage broker for purchases and mortgage renewals
Calgary’s housing market is not under threat of a correction despite a downturn in the local economy, Canada Mortgage and Housing Corp. said in an analysis Thursday.
Why today’s bank rate cut is not a big deal for mortgages
Below is a great summary of why this rate cut is not a big deal mortgage wise.
All the banks kept their rates the same but for TD that lowered their Prime rate by 0.10% only. No other banks have followed yet and are not expected to. As you can see the banks will keep that rate cut to boost their profits … because they love money; specifically, your money, not you.
4 Reasons Canadian Mortgage Rates Are Going to go up Soon
Here is a great summary of what is causing mortgage rates to be nosing up in the near future. They really should have gone up by now but the anticipated “Spring housing market rush” competition with the banks is holding them down.
Mark Herman, top Calgary, Alberta mortgage broker for home purchases and mortgage renewals
The latest round of economic data has real-estate watchers returning their focus to interest rates.
- Activity in the bond market and the latest employment numbers are fueling predictions there will be a bump in fixed-rate borrowing costs in the near future.
- Employment improvements are generally seen as a harbinger of inflation. That, along with other domestic and international considerations, is pushing up government bond yields, which in turn drive fixed mortgage rates.
- There is also the notion that the big, trend-setting lenders will be looking to move rates up to bolster profits.
- As well, Bank of Canada Governor Stephen Poloz has hinted he might be willing to let inflation run in order to avoid hiking the policy rate. That would also put upward pressure on government bond yields.
The graph we watch to show us this is here:
Bank Payout Penalties: The math behind “how they get you!”
This is a great article with the perfect math example.
Remember, there is also the catch of the collateral charge by the big banks that makes it cost about $2500 to leave your bank when your term is up.
Graph shows why mortgage rates may go up soon
We watch all kinds of indicators for when mortgage rates may change.
This is the main one, the CMB – Canadian Mortgage Bond. As you can see it is on the way up and mortgage rates and the graph are directly related.
Alberta sky is not falling
The graph below shows the expected Alberta GDP growth rate for the end of 2015 and 2016. The numbers are still positive – just not as high as they were before.
If the Calgary to Edmonton corridor was a country it would have the 2nd highest growth rate in the world after China.